Analyzing COMSCORE (SCOR) and RMG Networks (RMGN)

COMSCORE (OTCMKTS: SCOR) and RMG Networks (NASDAQ:RMGN) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

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23.4% of COMSCORE shares are held by institutional investors. Comparatively, 2.0% of RMG Networks shares are held by institutional investors. 4.9% of COMSCORE shares are held by insiders. Comparatively, 24.5% of RMG Networks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares COMSCORE and RMG Networks’ revenue, earnings per share and valuation.

Gross Revenue

Price/Sales Ratio

Net Income

Earnings Per Share

Price/Earnings Ratio

COMSCORE

$368.82 million

4.35

-$6.76 million

N/A

N/A

RMG Networks

$37.60 million

0.26

-$4.77 million

N/A

N/A

RMG Networks has lower revenue, but higher earnings than COMSCORE.

Volatility & Risk

COMSCORE has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, RMG Networks has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for COMSCORE and RMG Networks, as provided by MarketBeat.com.

Sell Ratings

Hold Ratings

Buy Ratings

Strong Buy Ratings

Rating Score

COMSCORE

0

1

0

0

2.00

RMG Networks

0

1

0

0

2.00

COMSCORE presently has a consensus price target of $24.00, suggesting a potential downside of 14.22%. RMG Networks has a consensus price target of $1.00, suggesting a potential upside of 12.36%. Given RMG Networks’ higher probable upside, analysts plainly believe RMG Networks is more favorable than COMSCORE.

Profitability

This table compares COMSCORE and RMG Networks’ net margins, return on equity and return on assets.

Net Margins

Return on Equity

Return on Assets

COMSCORE

N/A

N/A

N/A

RMG Networks

-14.28%

-63.63%

-22.63%

Summary

COMSCORE beats RMG Networks on 7 of the 10 factors compared between the two stocks.

About COMSCORE

comScore, Inc. is a cross-platform measurement company. The Company provides independent data, metrics, products and services to clients in the media, advertising and marketing industries. The Company delivers digital media analytics that help content owners and advertisers understand the composition of consumer media audiences, and also helps marketers understand the performance and effectiveness of advertising targeted at these audiences. The Company measures what people do as they navigate the digital world across multiple technology platforms and devices, including smartphones, tablets, televisions and desktop computers. The Company’s technology measures consumer interactions with digital media, including Websites, applications, video programming and advertising. Its solutions include Audience Analytics, Activation, Advertising Analytics and Movies Worldwide. The Company’s Audience Analytics products include MMX, Video Metrix, Mobile Metrix, qSearch and OnDemand Essentials.

About RMG Networks

RMG Networks Holding Corporation provides enterprise-class digital signage solutions. It offers suite of products, including proprietary software, software-embedded hardware, maintenance and support services, content and creative services, installation services, and third-party displays. The company provides Enterprise Server (ES), a robust software application server used to collect content from various applications and other data sources; and Media Players/Smart Digital Appliances, which are software pre-loaded media players that function as the content storage and rendering hardware between its ES content engine and the visual display end-points. It also offers Design Studio, a software used to design the look, feel, function, and timing of content played on end-point displays; InView, an integrated software product to deliver real-time business data and other content directly on employees devices; subscription content services, which provide business-appropriate news and current information; electronic displays, such as door displays; and MAX LED, LED display solutions for indoor and outdoor market applications. In addition, the company provides product maintenance, subscription-based content, custom creative, and installation and training services. It serves financial services, telecommunications, manufacturing, healthcare, pharmaceuticals, utility, and transportation industries, as well as federal, state, and local governments primarily in North America, Europe, the Middle East, and Asia. RMG Networks Holding Corporation was founded in 1980 and is headquartered in Dallas, Texas.